#EU's New Regulations Boost Euro Stablecoin Development#
Hot Topic Overview
Overview
The MiCA regulation, which came into effect on December 30th in the EU, could potentially boost the development of euro-denominated stablecoins. JPMorgan argues that MiCA's requirement for stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses will encourage compliant stablecoins to become trading pairs in regulated markets, thereby enhancing their standing. For instance, compliant stablecoins like Circle's EURC will benefit, while non-compliant stablecoins like Tether's EURT face challenges. Tether has discontinued its EURT stablecoin and delisted it from multiple EU exchanges. Nevertheless, Tether remains a "dominant force" in the global stablecoin market and is widely used in Asian markets. Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU.
Ace Hot Topic Analysis
Analysis
The MiCA regulation, which came into effect on December 30th in the EU, could potentially boost the development of euro-denominated stablecoins. In a recent research report, JPMorgan pointed out that MiCA requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, which will drive the development of compliant stablecoins, such as Circle's EURC, while posing challenges for non-compliant stablecoins like Tether's EURT. Tether has already discontinued its EURT stablecoin and delisted it from several EU exchanges. Nevertheless, Tether remains a "dominant force" in the global stablecoin market and is widely used in less regulated markets like Asia. Tether's investment in MiCA-compliant stablecoin issuers like Quantoz Payments indicates its commitment to maintaining a presence in the EU. The implementation of MiCA will provide a more stable foundation for euro stablecoins and could potentially boost the euro's position in the global financial system.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
EU MiCA regulation may promote the development of euro-denominated stablecoins
MiCA regulation requires stablecoin issuers to hold large reserves in European banks and obtain trading licenses, which will give compliant stablecoins an advantage
Non-compliant stablecoins such as Tether face challenges, such as stopping the issuance of EURT stablecoins and delisting from EU exchanges
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU